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LP - Chapter 9

Lake Park - AP Human Geography - Chapter 9 Vocabulary

QuestionAnswer
Fair Trade Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards
Gender Empowerment Measure (GEM) Compares the ability of women and men to participate in economic and political decision making
Gender-Related Development Index (GDI) Compares the level of development of women with that of both sexes
Gross Domestic Product (GDP) The value of the total output of goods and services produced in a country in a given time period (normally 1 year)
Human Development Index (HDI) Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
Literacy Rate The percentage of a country’s people who can read and write
Transnational Corporation A company that conducts, research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located
Gross National Product (GNP) The total value of all goods and services produced by a country’s economy in a given year. It includes all goods and services produced by corporations and individuals of a country, whether or not they are located within the country
Gross Domestic Product (GDP) The value of the total output of goods and services produced in a country in a given time period
Per Capita GNP The Gross National Product (GNP) of a given country divided by its population
Formal Economy The legal economy that is taxed and monitored by a government and is included in a government’s Gross National Product (GNP); as opposed to an informal economy
Informal Economy Economic activity that is neither taxed nor monitored by a government; and is not included in that government’s Gross National Product (GNP); as opposed to a formal economy
Modernization Model Model of economic development most closely associated with the work of economist Walter Rostow. Maintains that all countries go through 5 interrelated stages of development
Structuralist Theory A general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system
Dependency Theory Structuralist theory based on the idea that certain types of political and economic relations between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop
World-Systems Theory Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world
Three-Tier Structure With reference to Immanuel Wallerstein’s world-systems theory, the division of the world into the core, the periphery, and the semi-periphery as a means to help explain the interconnections between places in the global economy
Export Processing Zones Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment
Special Economic Zones Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
Informal Economy (Informal Sector) Economic activity that is neither taxed nor monitored by a government, and is not included in that government’s Gross National Product (GNP); as opposed to a formal economy
Trickle-Down Effect (Spread Effect) The diffusion outward of the benefits of economic growth and prosperity from the power center or core area to poorer districts and people
Underdevelopment A level of economic and social achievement below what could be reached- given the natural and human resources of an area- were necessary capital and technology available
Gross National Income (GNI) The total value of goods and services produced by a country per year plus net incomes earned abroad by its nationals; formerly called “gross national product.”
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